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Income Taxes
3 Months Ended
Sep. 28, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
As of September 28, 2013, the Company had $265 million accrued for unrecognized tax benefits, all of which would affect the Company’s effective tax rate if recognized. Additionally, the Company had $35 million accrued for interest and penalties as of September 28, 2013. At December 29, 2012, the liability for unrecognized tax benefits was $314 million and the accrual for interest and penalties was $69 million. The Company recognizes interest and penalties related to income tax matters in income tax expense.
The Company is subject to U.S. federal income tax as well as income tax of multiple state and foreign jurisdictions. The Company has substantially concluded all material U.S. federal, state, foreign and local income tax matters for all tax years through 2004. The U.S. Internal Revenue Service (IRS) is currently auditing the Company’s 2008 and 2009 tax returns and an audit report is expected to be issued in 2013. In 2012, the Company recognized $46 million of additional tax expense related to a settlement reserve for certain prior period tax positions related to the 2002 through 2009 tax years. During the third quarter of 2013, the Company recognized a $15 million tax settlement benefit due to the resolution of the IRS audits of the 2002 through 2007 tax years. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months.